President Hakainde Hichilema has welcomed a Moody’s Ratings projection that Zambia and Ethiopia will record the largest reductions in government debt pressures in Sub-Saharan Africa.
Moody’s has placed Zambia among eight countries in the region with a positive outlook, citing improving economic conditions and reforms supporting government finances.
The development comes as Zambia has reached a staff-level agreement with the International Monetary Fund on a new US$1.472 billion Extended Credit Facility aimed at supporting the country’s transition from economic stabilisation to growth.
President Hichilema says Zambia’s progress is significant, considering that the country was in default in 2020.
He has attributed the progress to difficult economic decisions and the sacrifice and patience of Zambians.
President Hichilema says reducing the country’s debt burden is central to the Government’s Grow Zambia agenda, which seeks to redirect resources previously used for debt servicing towards job creation, investment and increased incomes across the country.
However, the President has cautioned against complacency, noting that debt servicing costs remain high and that fiscal discipline will be maintained under the new IMF programme.
By Rachel Mumba
